Australian banks are major users of so-called “over-the-counter interest rate swaps", a type of derivative used to manage cash flow. These swaps had a turnover of almost $18 trillion last financial year.

Financial regulators are pushing banks to process these securities through a central clearing house to reduce risk, creating a potentially lucrative market for groups such as the ASX or LCH, which can fulfil the role. The ASX said the seven banks it had struck non-binding commitments with would help it develop its over-the-counter interest rate derivative clearing service. The service is expected to be launched in mid 2013.